Company completes pioneering work for Gulf project
MAYUR Resources says the company has completed pioneering and site enabling work for the pilot plant at its Orokolo Bay industrial sands project in Gulf.
The company, in a market release, said a construction crew, mobile machinery and building materials arrived at the site by barge on Feb 16 after a two‐day journey from Port Moresby.
The team’s first priority was building of pioneer wharf and 250m long road to the work camp.
A mobile timber mill was also established to enable all local timber to be milled and used in the camp construction.
All clans from the impacted villages have given their full consent and support for the bulk sample and pilot plant operation after their respective clan leaders signed a compensation agreement last Oct 29. Local landowners, clan leaders and villagers welcomed the arrival of the barge.
With labour from the local villages and under Mayur’s supervision, the first phase of work and the construction camp was completed.
The construction, commissioning and operation of small‐scale bulk sampling pilot plant represented stage 1 of the company’s joint venture with China Titanium Resources Holdings (CTRH) 1, whereby Mayur and CTRH have agreed to fund the capital costs of the pilot plant phase on a 50/50 split. However, Mayur Resources under this funding agreement have exercised its rights to defer 50 per cent of its funding obligations to stage 2 (full scale plant).
Under the funding agreement with CTRH, CTRH are required to fund 100 per cent of Stage 2 capital by investing up to US$25 million (K85.51m) for an earn in to Mayur Iron of 49 per cent, with Mayur Iron being the 100 per cent owner of the Orokolo Bay project.